“Nothing is good or bad except by comparison,” the political saying goes, and in her State of the State address, Gov. Kelly Ayotte used New Hampshire’s deep-blue neighbors to remind voters how good life is in the Granite State.
“We have the lowest tax burden in the country. And just this past year, we passed Vermont to become the No. 1 state to raise a family,” Ayotte told a joint session of the House and Senate. “Last month, we were named the healthiest state in the country. In total, U.S. News ranks us the No. 2 state in the nation.
“Now, I’m not sure what Utah is doing, but I want Utah to know — we are coming for you!”
Ayotte also compared New Hampshire to the rest of the region on tax policy, arguing that Democrats’ strategy to lower property taxes by raising other taxes and shifting the burden has failed elsewhere in New England.
“We are the ‘Live Free or Die’ state, but when you look at the states around us, we also show them what it looks like to ‘Live Free and Prosper,’” Ayotte said.
She noted that Rhode Island is facing a massive budget deficit and is turning to a so-called millionaire’s tax to cover a surge in state spending.
She also pointed out that Connecticut was the last U.S. state to implement a broad-based income tax in 1991.
“Since Connecticut enacted an income tax, they’ve raised it four times. And where does Connecticut rank today in property taxes? Third highest in the country.”
Ayotte acknowledged that high property taxes are causing pain for Granite Staters, but said tax rates across New England should serve as a cautionary tale to what she called “misguided” legislators who want to impose new taxes rather than control spending.
“If your solution to high property taxes is to institute new taxes that punish families and businesses, you can kiss the New Hampshire Advantage goodbye.”
That advantage, Ayotte said, “just in the last year brought six companies up from Massachusetts — and 500 jobs with them.”
The first-term governor got significant political mileage during her 2024 campaign from her “Don’t MASS Up New Hampshire” messaging, so it was no surprise she took a few shots at the Bay State.
“You may have seen the news: Little New Hampshire has Massachusetts bragging about retaining a single company,” Ayotte said. “Try to imagine that conversation 10, or even 20, years ago. Massachusetts is handing out millions in taxpayer dollars to stop companies from fleeing north, and we welcome them with open arms — not big giveaways like the Bay State doles out.”
All of that could be at risk, Ayotte warned.
“Make no mistake — we are never more than one election away from giving it up, from going the way of our neighbors, from MASSing up our Granite State.”
But it was energy policy where Ayotte reserved her sharpest criticism for New England’s Democratic leadership.
“Let’s understand why we are here,” Ayotte said.
“Our neighbors, who govern a lot differently than we do, are busy pushing up regional rates with their net-zero religion and lack of pragmatism and focus on the consumer,” she said. “At the same time, they are battling to block new energy projects that would lower costs for everyone in the region, projects like the Constitution Pipeline.”
Massachusetts, Connecticut, Rhode Island, Maine, and Vermont have embraced goals or mandates to achieve net-zero carbon emissions by 2050 or sooner. As a result, Ayotte argued, they purchase more expensive electricity for the New England energy grid, driving up costs for New Hampshire ratepayers.
In 2024, Democrat Cinde Warmington ran for governor on a net-zero platform. She is reportedly considering a run in 2026, but has not said whether she would continue to advocate net-zero energy policies.
While Ayotte criticized Democratic energy policies for driving up costs, she did not let utility companies off the hook.
“Here at home, our Public Utilities Commission has been too willing for too long to go along with the wishes of big utilities boosting their bottom line, instead of being focused on keeping rates as low as possible for the residents of this state,” Ayotte said. “The commission must provide transparency to residents when it comes to their electric bills and put the needs of ratepayers first.”
Part of Ayotte’s solution to high electricity bills is to increase supply by making New Hampshire a leader in nuclear power technology.
“Today, I am directing our Department of Energy to build pathways to foster the next generation of nuclear power generation here in New Hampshire,” Ayotte said. “I have asked the department to bring together stakeholders, lawmakers, and organizations focused on nuclear generation to ensure our state is at the forefront of this pivotal technology.”
Ayotte’s speech was well received by Republicans and business groups, while Democrats were less enthusiastic.
“Small business owners are grateful for Gov. Ayotte’s strong focus on making New Hampshire more affordable, preserving pro-growth tax reform, and growing the state’s workforce,” said John Reynolds, state director of NFIB New Hampshire. “In particular, we commend the governor’s strong message on the persistent and growing problem of energy affordability. Reliable and affordable energy is crucial for families, small businesses, and sustained economic success in New Hampshire.”
Rep. Erica Layon (R-Derry) told NHJournal she was pleased Ayotte focused on energy and nuclear power.
“Her commitment to nuclear is going to create affordable energy and bring more business to the state of New Hampshire, because right now the energy costs are keeping a lot of people out,” Layon said.
Asked about the speech, Rep. Sam Farrington (R-Rochester), a student at the University of New Hampshire, said, “It was based.”
“She called out Democrats on taxes,” Farrington told NHJournal. “She said their plan on property taxes is to raise other taxes, and she’s right. It’s in their own words: They want to raise an income tax and shift the property tax burden.”
Manchester Republican Rep. Kathleen Paquette said her favorite part was when Ayotte talked about “keeping the New Hampshire way.”
“We need the New Hampshire Advantage, because we need to stand out,” Paquette said.
New Hampshire Democratic Party Chair Ray Buckley offered a starkly different response.
“If Kelly Ayotte wants to take immediate action to tackle her affordability crisis, she should use this morning to announce that she isn’t running for another term,” Buckley said.
“What you won’t hear in Kelly Ayotte’s victory lap is how she imposed new excessive Medicaid premiums, jacked up more than 90 fees on families and small businesses, cut child care workforce grants, and slashed affordable housing programs — just to pay for an expensive, property tax-hiking private school voucher scheme,” he added. “When she isn’t glossing over her disastrous record, she’s hiding from Donald Trump in the Corner Office, too scared to challenge him in court, where it matters most.
“Ayotte can try all she wants, but there’s no amount of spin that can hide just how abysmal her record really is,” Buckley said.